Managing Human Resource

This article discusses the different types of employment contracts and their advantages and disadvantages. It also provides examples of how organizations like Tesco and Intercontinental Hotels use different contractual approaches to meet their workforce needs.

Managing Human
Resource

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY ..................................................................................................................................2
Definition, explanation, and analysis of the four types of contractual models...........................2
Advantages & disadvantages of varied types of contracts..........................................................4
Examples of practice from two different organisations showing how and why they use
different contractual approaches.................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Human resource is the most important aspect for an organisation which is playing
different role in developing, reinforcing and changing organisation culture for higher growth and
development of entity (Harris, 2020). Human resource management is an essential unit which
deals with various issues related to performance management, compensation, employee
motivation, safety and wellness and more (Potgieter and Mokomane, 2020). For an HR
practitioners staffing is playing a major role through which they can hire right individual for
right job in the entity (Importance of Staffing. 2020). This will lead them towards maximising
potential of the person through which company can assure higher growth and profitability.
Present report include formative discussions upon different form of contracts of
employment along with its advantages and disadvantages for employees and employer. In
addition to this, report also include the way in which organisations undertake use of mix
contractual models as to fulfil their organisational needs.
MAIN BODY
Contract of employment is a formal agreement that include rights, employment condition,
duties and responsibilities for both employees and employers. It is important for these involved
parties to stick to the terms of contract until it ends or until it gets changes (What Is an
Employment Contract?). This is most important aspect that depicts roles and responsibilities of
employees and employers which is required to be effectively adhere by them. It has been seen
that there are mainly four different types of contracts that are Permanent full-time contracts,
Permanent part-time contracts, ‘Zero-hours’ casual contracts and ‘Fixed-term’ temporary
contracts (Kutaula, Gillani and Budhwar, 2020). All these contracts are having different terms
that are required to be effectively consider by employer and employees. In context with
permanent full-time contracts it has been evaluated that it is a type of contract is also known as
fixed term contract it is mainly a written employment statement in which there is statutory
minimum level of paid leaves, minimum length of rest breaks, payslips of all deduction for
instance, National Insurance contribution and more are included (Permanent Employment
Contracts: What you need to know. 2020). Further it has been evaluated that in this, employees
are being provided with safe and secure working atmosphere with minimum wage and
discrimination free environment. In addition to this, it has been underlined that a permanent
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contract of employment must consists of all the essential terms and aspects that are mentioned in
section 1 of the Employment Rights Act 1996 such as hours of work, sick pay, pension, place of
work, notice, job title and description, holidays, remuneration details, date of commencement
and more. While additional set of clauses can also be included in the permanent employment
contract according to the wish or mutual discussion of involved parties.
On the other hand, if it is talked about Permanent part-time contracts in this individuals
work for less than 38 hours a week or on contracted hours basis. It has been evaluated that in this
type of contract employees are required to work according to the number of hours per week. In
this employees can be paid according of salary/ hourly wages as per the total amount of hours
worked (Collins, 2020). Further it has been underlined that in this type of contract employees are
duly entitles with benefits as permanent contracts or according to the terms stated in permanent
part-time contract. However, according to the evaluated this has been determined that this type of
contract can be extended according to the discussion of involved parties. This contract also allow
employees to work overtime as per their desire. While on the other hand, in this contract
employees and employer may face disadvantages in terms scheduling meeting and coordinating
projects. While if it is talked about,‘Zero-hours’ casual contracts it is also termed as casual
contracts as in this employees mainly work according to the requirement of employer. Further it
has been determined that in this contract there are certain advantages such as in this form of
employment contract employees mainly perform their roles and responsibilities under no
obligation of determined work hours. In this employer is required to offer employees with at
least the National Minimum Wage to work. Further as per according to the evaluation it has been
determined that in zero hour contracts employees can have access to seek employment
elsewhere. While on the other hand major disadvantage of this zero contract is that in this, there
in unpredictable working hours, low income along with this, in this form of contract employees
may feel pressurised.
While, in context with, Fixed-term’ temporary contracts it has been evaluated that the
payment or payout is being already set in advance. This can further not altered until the contract
term expires. According to the evaluation it has been evaluated that in this form of contract if an
employer ends contract prior to the maturity date then in this case employee is having significant
right to a notice period. Further as per the evaluation it has been determined that, if an employee
is in fixed term contracts for 4 or more years then they are having significant right to become
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permanent workers, however in this employer is required to underline a strong business reason if
any decline is being made by him.
Advantages & disadvantages of varied types of contracts.
There are different types of contracts such as Permanent full-time contracts, Permanent
part-time contracts, ‘Zero-hours’ casual contracts and ‘Fixed-term’ temporary contracts. It has
been evaluated that these contracts are having their own advantages as well as disadvantages that
are required to be effectively consider by both employee and employer before undertaking use of
them. Proper understanding of the benefits and demerits of these contracts will allow involved
parties to utilize these contracts in more effective manner.
If it is seen in terms of permanent full-time contracts, there are number advantages
associated with this. According to the evaluation it has been determined that most important
advantage of this contract is job security, career development opportunities, parental leave
allowances, holiday entitlements, pension benefits and more. Permanent full-time contract offer
job security through which an individual can effectively have assuring of having permanent job
and regular source of income (Volonciu, 2020). This will facilitate them to invest themselves
emotionally in business in more effective way. In addition to this, other form of benefits that are
entitled in this employment contract is related to paid time off, health insurance, training and
development and more (Everything You Need To Know About A Permanent Contract. 2020).
Along with this, one of the most important form of advantage associated with this contract is that
it offers employees an ability to maintain work-life balance in effective manner. Further it has
been underlined that in this employment contract employer offers many talent and growth
opportunities to their employees through they can effectively maximise their career growth and
future development. While on the other hand, it has been determined that there are some certain
form of disadvantages being associated with permanent full-time contracts, such as greater
liability, more administrative work and more. In terms with greater liability this has been
evaluated that if an employer or employee violate any terms of contract they are liable for great
damages (Nguyen and et. al., 2020). It is essential for both of them to make sure that they do not
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commit to any terms they are not capable to meet. Along with this, it has been signified that
employees in this form of contract are entitles with retirement saving options, health insurance
and more. All these are required to be consider by employer in order to make sure that their
employees are having satisfaction while performing their job roles. While on the other hand if it
is talked about, Permanent part-time contracts most important advantage of this contract is that
in this employees are having more flexible schedule and can work for other commitments. In
addition to this, it has been determined that in this employees are having benefit to try out new
roles for more sources of income.
In addition to this in context with Fixed-term’ temporary contracts, it has been evaluated
that there are number of advantages as well as disadvantages entitled with this form of contract
that are effectively required to be consider by employees and employers. In terms with
advantages it has been evaluated that with the help of this employment contract employees can
have valuable experience along with having significant access of flexibility (Djalilova, 2020). In
addition to this, this has been determined that in this employee can also avoid any long-term
commitment. While on the other hand some certain form of disadvantages of this contract is that
in this, employees are not having any form of long-term security. Along with this, in this
promotion are unlikely.
Examples of practice from two different organisations showing how and why they use different
contractual approaches.
Contracts for employment agreement are of various types which are chosen by
organisations on the basis of their nature of business, size, requirement of human resource and
most importantly the level of flexibility and ease those contracts provide the organisation from
any legal charges and fee. In this segment of the essay two organisations employment contractual
approaches will be evaluated and demonstration will be focused on why and how they use
different contracts for different employees in their workforce (Morley, Heraty and Michailova,
2016).
Tesco Plc is a supermarket store which deals majorly in retail sector and have recently
developed its manufacturing unit for producing it food products under its brand name. Tesco Plc
is UK's largest superstore which is leading the market and industry through its cost leadership
strategy by keeping prices the lowest form others and being easily accessible to customers. The
company has a huge customer base around the globe which raises the need for Tesco Plc to have
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giant employee base or workforce as well. Thus, in different locations employees are hired on
separate contracts according to needs, requirements and feasibility of the firm.
This is the first and key factor which leads to variations in employment contracts of
separate personnels. Another reason is variation in social environments, with changing market
workforce needs change too. For instance, at the time of Christmas and New Years holidays
workforce needs suddenly shoots up and new workers are hired for stores in bulk. Whereas once
the environment becomes normal and holiday season gets over the workforce are released and
cut down for maintaining their competitive edge and market leadership of lowest cost provider
and extra employee and their pay scale directly affects operational cost and then profitability of
Tesco Plc. These situation reflects the need for the organisation to increase and decrease their
workforce according to different occasions and in relevance to it employment contracts and
agreements presented changes (Noe and et. al., 2018).
The first form of employment contract which Tesco Plc uses is Permanent full time
contract under which around 250,000 employees are working a agreement which holds all the
required and related information of the job beginning from pay scale of employee, roles and
responsibilities, job descriptions, their annual leave balances, their promotional policies and
many other job related aspects. The permanent contract is a long term contract which the
employer that is Tesco Plc use for brining in experts for management of operations and related
employment aspects. This form of contract is used by Tesco Plc to fulfil its basis need of
workforce which are important to be present in company all the time and look over on going
activities and chores of the firm. For instance, for hiring a finance manager permanent contract is
made, who will play several role in company beginning form managing the financial requirement
and measures of Tesco Plc to keeping the team in line and many other. Another example is of a
sales manager, this is a continuous of Tesco Plc and also a key or core function for which a
expert is needed on full time basis and everyday. Therefore, for completing and keeping the basis
operations of Tesco Plc in line employees are hired on permanent basis and for longer period
(Kmecova, 2018).
The second form of contracts Tesco Plc use of recruiting and managing staff is
Permanent Part time contract where around 50,000 employees are working. According to this
work contract personnels are obligated to work for 38 hours a week with their employer. The
preference is in hands of employees and they are just obligated to complete their 38 hour work
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shift with the employer on weekly basis. Thus, in Tesco Plc Permanent Part time contracts are
used while hiring employees at the time of emergencies and when sudden need of workforce is
arises. For instance, at the time of holiday seasons or while tourism increases in the localities. In
such situation foot falling in stores increases as higher number of population is present. Thus, to
manage all the customers effectively and efficiently workers are hired on Permanent Part time
contracts. In addition to this, with the help of Handy’s Shamrock model organisation can also
offer short-term contracts as with the help of many title jobs TESCO can provide enrichment to
higher degree. Furthermore, it has been TECO with the help of this model can maintain
humanistic approach to organisational structure. Along with this, this model will facilitate
TESCO to coordinate, motivate and reward employees.
These are the two major employment contractual approaches that are Permanent Part time
contract and Permanent full time contract which are used by Tesco Plc for bringing in employees
for accomplishing prescribed goals and addressing the need and requirement raised for workers
to be increased or decreased in the organisation. Tesco Plc is very accurate about its products and
service quality thus, it keeps a deep focus on its recruitment and selection processes while
bringing in workforce for completing small or large actions (Dessler, 2016).
Next example organisation is Intercontinental Hotels and Resorts, a United Kingdom
based hospitality business company which deals in worldwide locations with its varied hotel and
resorts properties. Intercontinental Hotels and Resorts is amongst the leading hospitality service
provider which is dealing in Accommodation, Food & Beverage and Recreation sector of the
field. Intercontinental Hotels and Resorts offers diversified types and forms of services to guests
who visit their hotels or resorts in any place around the world where the organisation has its
presence. This implies the level of expertise workforce company requires in all of their
properties for creating synergy in operations and resorts present in separate locations.
The first form of employment contractual approach used by Intercontinental Hotels and
Resorts is similar to Tesco that is Permanent full time contract under which 10,000 employees
are contracted. By utilising this contract Intercontinental Hotels and Resorts bring in the experts
and professionals it requires for long time in the firm and who will be responsible for
management and administration of hotels and resorts in separate work places. For example,
which changing social trends a need is arises to add new menu items and cuisines in restaurants
for the London branch (ŠIKÝŘ, Sekerin and Gorokhova, 2018). Now, with planning and
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development of kitchen team members it was decides to add Indian food items and dishes for
which a new separated menu is also needed. For this change to be executed properly and
according to the plans made new employee with relevant expertise in Indian cuisines and culture
needs to be recruited. For which Permanent Full time contract will be used as the purposes for
longer term.
Intercontinental Hotels and Resorts also, make use of Zero hours casual contracts that is
a employment agreement which is structured in way that obligates the worker to work in
accordance to the requirement of the employer whenever they need them. Most commonly zero
hour contracts are used by hospitality organisations and in the industry for bringing and
increasing workforce numbers in required times. The zero hours contracts offers the employer
flexibility and ease in case of workforce as they have the right over workers to call them at time
emergencies and needs. In hospitality sector workforce is shortened in holiday seasons as people
around the world moves out for enjoying their holidays on different vacations. Thus, in such
relevant situations the hotels and other service providing companies requires staff as early as
possible and they make use of zero hours casual contracts and employment agreements.
In relation with Intercontinental Hotels and Resorts specifically in London, the
organisation make use of Zero hours contracts for making arrangements for workers in holiday
seasons. For example, while Christmas holidays London is specifically attracts huge bunch of
tourists and travels form domestic and international places. Thus, Intercontinental Hotels and
Resorts at the time of those peak holiday season make use of Zero hour contracts for appointing
employees in huge bunch and making them work according to hotel requirements and need. In
order to serve a fully packed hotel customers huge employee force is needed and to make to
avail them Intercontinental Hotels and Resorts make the most efficient use of the contact as it
provides the hotel huge advantage of flexibility and adjusting work practices (Oelberger, Fechter
and McWha-Hermann, 2017).
CONCLUSION
The above report is based on human resource and discussion is constructed over
management of employees concluding the effectual and most productive outcomes being
extracted with appropriate use of present techniques and ideas. In the present assessment is made
in essay form where initially four employment contract approaches are discusses which are
Permanent Part time contract, Permanent full time contract, Zero hour contracts and Fixed-term’
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temporary contracts. With thorough evaluation and analysis of these four contracts it is been
demonstrated that all the contracts are different form one another and made use by organisations
in various situations at the same time for hiring employees and building up their workforce.
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REFERENCES
Books and Journals
Collins, B., 2020. Defining the Employee in the Gig Economy: Untangling the Web of Contract.
In Conflict and Shifting Boundaries in the Gig Economy: An Interdisciplinary Analysis.
Emerald Publishing Limited.
Dessler, G., 2016. Fundamentals of human resource management. Pearson.
Djalilova, K.M., 2020. ADVANTAGES AND DISADVANTAGES OF DISTANCE
LEARNING. Наука и образование сегодня, (7), pp.70-72.
Harris, O., 2020. Staffing and Training and Development: Perceptions of HRM Factors
Contributing to Micro Enterprise Growth. Wilmington University (Delaware).
Kmecova, I., 2018. The processes of managing human resources and using management methods
and techniques in management practice. Ekonomicko-manazerske spektrum, 12(1),
pp.44-54.
Kutaula, S., Gillani, A. and Budhwar, P.S., 2020. An analysis of employment relationships in
Asia using psychological contract theory: A review and research agenda. Human
Resource Management Review. 30(4). p.100707.
Morley, M. J., Heraty, N. and Michailova, S. eds., 2016. Managing human resources in Central
and Eastern Europe. Routledge.
Nguyen, T.Q and et. al., 2020. Do workers benefit from on-the-job training? New evidence from
matched employer-employee data. Finance Research Letters, p.101664.
Noe, R. A. and et. al., 2018. Fundamentals of human resource management. McGraw-Hill.
Oelberger, C. R., Fechter, A. M. and McWha-Hermann, I., 2017. Managing human resources in
international NGOs. The Nonprofit Human Resource Management Handbook: From
Theory to Practice, pp.285-303.
Potgieter, I.L. and Mokomane, S.E., 2020. Implementation of human resource management
functions in selected small manufacturing companies in Ga-Rankuwa industrial area,
Gauteng, South Africa. SA Journal of Human Resource Management. 18(1). pp.1-11.
ŠIKÝŘ, M., Sekerin, V. and Gorokhova, A., 2018. Managing Human Resources Using the Best
Practice. Best Fit Approach. Journal of Applied Economic Sciences, 13(1).
Volonciu, M., 2020. Flexibility of working time, between the organizational prerogative of the
employer and the social protection of employees. Conferința Internațională de Drept,
Studii Europene și Relații Internaționale. 8(VIII), pp.474-480.
Online
Permanent Employment Contracts: What you need to know. 2020. [Online]. Available through<
https://www.lawbite.co.uk/resources/blog/permanent-employment-contracts-what-you-need-to-
know/>
Importance of Staffing. 2020. [Online]. Available
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Everything You Need To Know About A Permanent Contract. 2020. [Online]. Available
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